KUALA LUMPUR: Domestic workers and their employers will have access to insurance protection beyond the recruitment guarantee period under a newly launched scheme that covers abscondment, hospitalisation and surgical expenses.
Launched by the Association of Employment Agencies Malaysia in partnership with Gmat Sdn Bhd, the scheme is priced at about RM200 annually and is valid for 12 months, before renewal is required.
The scheme is accepted and implemented by Allianz General Insurance Company (Malaysia) Berhad.
Under the scheme, cases of abscondment within the insured period offer compensation of RM5,000 to employers; up to RM10,000 for hospital and surgical coverage in both private and government hospitals, alongside medical coverage of up to RM2,000, among others,
Currently, the scheme can only be purchased by association members for their domestic workers.
Papa has about 100 active members nationwide.
“We are highly encouraging our members to take up this scheme. Interested employers can also speak to their agencies to arrange for the coverage.
“This also applies to existing domestic workers already in Malaysia,” said the association’s president, Datuk Foo Yong Hooi, at the launch here on Thursday (June 25).
Foo explained that the initiative was developed in response to a structural gap in the current domestic worker recruitment system, where the guarantee period typically ranges from 3 to 6 months, depending on arrangements with foreign recruitment partners.
“Once this period expires, employers are often left fully exposed to financial risk, despite the long-term nature of the employment relationship.
“Domestic employment involves human lives and livelihoods. The objective of this insurance is not to commercialise risk but provide a fair and balanced protective mechanism for both employers and domestic workers,” he said.
Foo added that the association has also observed real-life situations where otherwise capable domestic workers were later diagnosed with medical conditions not detectable during pre-employment medical screenings.
“Here, employers may face unexpected financial pressure, particularly when treatment costs are high, and in some instances, domestic workers themselves may request to return to their home country.
“This causes both parties to be affected, where the insurance is designed to bridge that gap while providing a more balanced protection framework,” he said.
Gmat Sdn Bhd chief executive officer M. Marimuthu said the age limit for the insured coverage ranges from 18 to 65 years old.
He said the insurance scheme is already available for purchase online among Papa members, where an affiliate code will be given.
“The ability to purchase this product online is the first-of-its-kind in Malaysia. We have worked closely with the association and negotiated with the insurer for this product as well,” he said.
